The City of Tshwane has announced the proposed increases to rates and tariffs in its draft 2021/22 Medium-Term Revenue and Expenditure Framework – which will see price hikes for electricity, water and other services in the coming months.
Executive mayor, Randall Williams, said that the city tried to contain the hikes as best it could, but given the adverse economic conditions in the country as a whole, above-inflation price increases could not be avoided.
The only exception to this is the property rate, which will see the lowest increase in the city’s history, he said.
“The city took a firm decision to keep increases within our control as low as possible. An increase of only 2% is proposed for property rates, while refuse removal charges will increase by 4.1%,” he said.
However, big charges are out of the city’s hands, such as the 15.63% increase in the cost of bulk purchases from Eskom, which came into effect from 1 April 2021.
“The city has no other choice by to pass this cost increase on to the customers, and a tariff increase of 14.59% effective 1 July 2021 is proposed,” Williams said.
The city is also bound by the tariff increase in the bulk purchases of water from Rand Water, which will see prices increase by 8%, while sanitisation charges will increase by 10%.
Williams said citizens need to manage and track their consumption of water and electricity to decrease the effects of the price hikes.
2021/2022 price hikes
- Electricity: +14.59%
- Sanitation: +10%
- Water: +8%
- Refuse removal: +4.1%
- Property rates: +2%
Headline inflation in February was 2.9%.